America-based investment company BlackRock has again reduced the valuation of Byju’s. Now it has come down to 1 billion dollars. According to the filing filed on January 5, BlackRock Global Allocation Fund has valued one share of Byju’s parent Think and Learn Limited at around $ 209.5/share.
BlackRock holds 0.9% stake in the company
BlackRock has 0.9% stake in Byju’s. In May last year, BlackRock had reduced the valuation of Byju’s from $11.3 billion to $8.4 billion. BlackRock is not the only investor to have reduced Byju’s valuation on its books.
In November, long-term investor Prosus had reduced Byju’s valuation to $3 billion. At one time it was 22 billion dollars. That means it was reduced by 86%.
The reason for such a sharp decline in Byju’s valuation is the company’s aggressive expansion after the pandemic. The company was not successful in this as expected. Not only this, Bavause is facing many legal challenges. With this the company is not making profits. The remaining gap was filled by its poor corporate governance.
The company’s losses kept increasing
Think and Learn had a consolidated income of Rs 5,015 crore in FY22. In comparison, the company’s income in 2020–21 was Rs 2,280.2 crore. The company had also missed the guidance of Rs 10,000 crore. Its loss also increased to Rs 8,245 crore in FY22, which was Rs 4,564 crore in the year-ago period.
According to the data, the company also made several acquisitions in FY21. During this period, due to the lockdown, students had opted for online studies. But this did not yield any better results. This was the time when the company’s troubles began.
